Red Oak Capital Holdings, LLC, a leading provider of private capital solutions for commercial real estate, has provided a $2.83 million bridge loan for the acquisition and planned rehabilitation of a 44-unit garden-style apartment property Palms at Augusta in Augusta, Georgia.
The transaction was originated by Red Oak Regional Manager Stratos Athanassiades, underwritten by Thomas Gorski, and administered by James Myatt. The borrower is an affiliate of Garbo & Co., a vertically integrated real estate investment firm with a portfolio of 24 multifamily assets totaling $129 million in value, primarily concentrated in New York City. Andrew Liebhard, Managing Director at Meridian Capital Group, arranged the financing on the borrower’s behalf.
The subject property is the second phase of The Palms at Augusta, a 200-unit multifamily community that was originally built in 1968. The collateral consists of four single-story buildings with 44 two-bedroom, one-bath units averaging 630 square feet. The property sits on a two-acre parcel at 1755 Essie McIntyre Road, just two miles from Downtown Augusta in a predominantly suburban neighborhood.
Under the business plan, the sponsor will immediately commence renovations to 18 vacant units. Two of those units will receive full interior upgrades, while the remaining 16 will undergo modest improvements such as flooring repairs, new paint, LED lighting, updated appliances, and AC replacements. Exterior work will include fence repairs and storm door installation.
“This is a textbook example of a sponsor scaling their footprint through strategic adjacencies,” said Athanassiades. “With the sister property next door already stabilized at strong rents, The Palms at Augusta presents a clear path to value through modest capital improvements and focused lease-up. We’re pleased to help unlock that opportunity.”
The borrower previously acquired the adjacent sister property in April 2024 and executed a similar repositioning strategy. That community is now 95.7% occupied at competitive market rents averaging $869 per month. The two assets will share the same property manager—which was also the assets’ prior owner—allowing for operational continuity and additional scale.
Once work is completed at Palms, the borrower anticipates a 10.2% increase in average rents, with a 20% premium targeted for fully renovated units. Once stabilized, the sponsor intends to retire the Red Oak loan via a permanent agency loan.
“Red Oak’s platform is designed to empower experienced, mission-aligned operators focused on long-term value creation,” said Gary Bechtel, CEO of Red Oak Capital Holdings. “The Palms at Augusta offers the right combination of stabilized rent growth, low supply, and a Sunbelt location where we continue to see sustained demand and investor activity.”
The property is located in a highly dense region of the Augusta suburbs, with an immediate household income exceeding $105,000. Multifamily occupancy in Augusta-Richmond County has remained above 92% for more than a decade, and new supply remains minimal with just 517 units projected for delivery over the next 24 months. Over the past five years, rents in the submarket have grown at an average annual rate of 3.9%, with CBRE forecasting continued growth of 2.7% annually through 2028.
